Ashland Oil, Inc. v. Olymco, Inc.

905 F. Supp. 409, 1994 U.S. Dist. LEXIS 20763, 1994 WL 865751
CourtDistrict Court, W.D. Kentucky
DecidedMarch 31, 1994
DocketCiv. A. No. 91-0310-L (J)
StatusPublished
Cited by3 cases

This text of 905 F. Supp. 409 (Ashland Oil, Inc. v. Olymco, Inc.) is published on Counsel Stack Legal Research, covering District Court, W.D. Kentucky primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Ashland Oil, Inc. v. Olymco, Inc., 905 F. Supp. 409, 1994 U.S. Dist. LEXIS 20763, 1994 WL 865751 (W.D. Ky. 1994).

Opinion

FINDINGS OF FACT, CONCLUSIONS OF LAW AND JUDGMENT

JOHNSTONE, Senior District Judge.

Ashland Oil, Inc. (“Ashland”) brought this action against Olymco, Inc. (“Olymco”) alleging trademark infringement, false designation of origin, and unfair competition and trade practices. Both Ashland and Olymco are providers of oil change services. Ash-land seeks to recover damages and preclude Olymco from using its “instant oil change” trademark in referring to Olymco’s oil change services. Olymco counterclaimed for cancellation of Ashland’s instant oil change trademark registration.

The Plaintiff moved for a preliminary injunction to enjoin the Defendant’s continued use of the instant oil change trademark. This court found that the term “instant oil change” was descriptive and accordingly that the burden was upon the Plaintiff to show that “secondary meaning” had inured to the Plaintiffs trademark. After a preliminary evidentiary hearing on May 24, 1991, this court found that the Plaintiff failed to produce sufficient evidence to establish “secondary meaning” prior to the Defendant’s first use of the instant oil change phrase. The Plaintiffs motion for preliminary injunction was denied.

Plaintiffs infringement claim and Defendant’s trademark cancellation counterclaim were tried on August 5,1993 before the court without a jury. The ultimate issue was whether the Plaintiffs trademark “instant oil change” had obtained secondary meaning. The court, having considered the pleadings, the testimony of the witnesses, the documents, photographs and drawings in evidence, and being otherwise sufficiently advised, hereby makes the following findings of fact and conclusions of law as required by Rule 52, Fed.R.Civ.P.

FINDINGS OF FACT

Upon the record, the court finds the following to be the relevant facts of this case. To the extent that the following findings of fact contain conclusions of law, they are adopted as such.

1) Ashland’s predecessors applied to the United States Patent and Trademark Office (the “USPTO”) for registration of the service mark “instant oil change.” The USPTO determined that the mark was descriptive and placed it on the supplemental register as not having satisfied the requirements of the principal register.

2) The mark “instant oil change” is a registered trademark of Ashland and was trans[411]*411ferred from the supplemental register to the principal register of the USPTO on March 8, 1988. See Plf.Ex. IB. This transfer was based upon a presumption of secondary meaning inuring to the mark after five years of continuous use in commerce. 15 U.S.C. § 1052(f).

3) Olymco began using the phrase “instant oil change” in advertising and signage in February 1990.

4) Olymco had constructive notice of Ash-land’s trademark “instant oil change” since it was on file in the principle register of the USPTO as of March 8, 1988. 15 U.S.C. § 1072.

5) Olymco had actual notice of Ashland’s use of the phrase “instant oil change” on or before February 1990. Olymco used the phrase on signage and in advertising not in bad faith, but rather based upon the good faith belief of their advertising agent that the term was not a trademark.

6) Ashland presented the testimony and report of Dr. Michael Rappaport concerning a consumer study performed by his firm in March of 1992. The report shows that a small segment of the consuming public in the Louisville area associates “instant oil change” with a single source.

7) Dr. Rappaport’s report claims that “42% of the applicable public in Louisville associate INSTANT OIL CHANGE with a single company.” After adjusting for “guessing” the report finds that “26% of the applicable Louisville population have come to associate a single company with INSTANT OIL CHANGE.” Plaintiffs Exhibit No. 7, page 7. Even if Rappaport’s report is taken as proper and non-biased, it is merely evidence of secondary meaning as of March 1992. It does not accurately depict the level, if any, of secondary meaning Ashland’s mark had when Olymco first began to use it in February 1990.

8) For fiscal year 1987 through fiscal year 1990 Valvoline Instant Oil Change, Inc. (‘Valvoline”) had total national sales of $170,-922,000 and advertising expenses of $14,441,-000. Over this same period Valvoline had total sales in the Louisville market of $6,278,-000 and advertising expenses of at least $164,000.

9)Valvoline’s standard practice was to base advertising expenses as a percentage of sales, and this percentage was always the same. For fiscal year 1987 through fiscal year 1990 Valvoline’s nationwide advertising expenses were considerably lower than amounts expended by its major competitors. (Trial Transcript, p. 48, L. 11-p. 50, L. 2).

CONCLUSIONS OF LAW

Upon the foregoing findings of fact the court makes the following conclusions of law. To the extent that these conclusions of law contain findings of fact, they are adopted as such.

I. JURISDICTION

1) This court has jurisdiction over the parties, and the subject matter of this action is within its trademark jurisdiction. 28 U.S.C. § 1338(a). This court has the jurisdiction to determine Ashland’s rights to the registration of its trademark “instant oil change” and, upon finding that no secondary meaning has inured to the mark, may order its cancellation in whole or in part. 15 U.S.C. § 1119.

II. DESCRIPTIVE NATURE OF THE MARK “INSTANT OIL CHANGE”

2) Ashland’s trademark, “instant oil change,” is descriptive since it is non-inherently distinctive and merely describes the intended function of the services it provides, i.e., rapid, quick oil change. In particular, “instant” merely describes a desirable characteristic of the services provided by Ash-land, Olymco and other competitors. See Burke-Parsons-Bowlby v. Appalachian Log Homes, 871 F.2d 590, 594, 10 U.S.P.Q.2d 1443, 1445 (6th Cir.1989).

3) In determining whether a term is used in a descriptive manner, courts look to the dictionary definition of the term. See American Heritage Insurance Co. v. Heritage Co., 494 F.2d 3, 182 U.S.P.Q. 77, 82, n. 5 (5th Cir.1974). Courts then determine if such a term’s meaning is known to and “readily grasped” by large numbers of the consuming public. See In re Miteyfast Service Centers, [412]*412Inc., 223 U.S.P.Q. 1154, 1155-56 (T.T.A.B.1984). Ashland uses the term “instant” to describe their oil changing services in a manner consistent with the dictionary definition and commonly understood use of such term. Such meaning is commonly known to and readily grasped by the consuming public. Accordingly, the term “instant oil change” is used in a descriptive manner.

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Bluebook (online)
905 F. Supp. 409, 1994 U.S. Dist. LEXIS 20763, 1994 WL 865751, Counsel Stack Legal Research, https://law.counselstack.com/opinion/ashland-oil-inc-v-olymco-inc-kywd-1994.